IFCO reports strong operational profit and cash flow growth in 2009
(Thomson Reuters ONE) -
IFCO Systems N.V. / IFCO reports strong operational profit and cash flow growth in 2009 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Amsterdam, Netherlands, March 3, 2010
IFCO's currency adjusted operational profitability (EBITDA) grew significantly
in 2009 by 19.5% to US $129.0 million. As a result IFCO achieved strong EBITDA
margin growth from 14.9% in 2008 to 17.5% in 2009. IFCO's currency adjusted
group revenues grew by 1.6% to US $735.9 million in 2009.
RPC Management Services showed robust and sustainable growth and has continued
to withstand the economic downturn and delivered gains in both revenues by
11.2% to US $398.5 million and EBITDA by 34.7% to US $116.9 million. IFCO was
able to increase the penetration with its existing retailer base, extended the
geographical coverage of its business especially in Central Eastern Europe (CEE)
and increased volume innew RPC applications. As a result of the effects of the
US economic recession, the successful development of the RPC business segment
was offset by a decline in revenues by 10.6% to US $337.5 million and EBITDA by
24.4% to US $23.0 million in our Pallet Management Services business segment.
Increasedrevenues in RPC Management Services were the result of organic volume
growth in our European RPC business, the YTD effects of the Q2 2008 STECO
acquisition, strong growth in our RPC US business and in RPC South America.
Revenues in Pallet Management Services declined compared to 2008. Although key
product volumes increased compared to 2008, pricing pressure resulting from
weakened market demand drove revenues lower in this segment.
Gross profit margin on a group level increased in 2009 by 3.1 percentage points
to 20.5%. RPC Management Services' gross profit margin significantly grew from
20.8% in 2008 to 26.4% in 2009. Lower per unit washing and transportation costs
and sustainable economies of scales effects supported the gross margin
improvements in Europe and the US. Additionally, RPC Management Services
benefited in Europe from synergies resulting from the successful integration of
the former STECO organization. Gross profit margin in the Pallet Management
Services business fell to 13.7% in 2009 from 14.2% 2008, with the effects of
lower sales prices and lower leverage of fixed operating costs partially offset
by lower raw materials costs and fuel prices.
Currency adjusted groupEBITDA increased in 2009 by 19.5% to US $129.0 million.
EBITDA on a currency adjusted basis in RPC Management Services increased
significantly in 2009 by 37.9% to US $116.9 million. RPC Management Services
EBITDA margin improved in 2009 by 5.1 percentage points to 29.3%. EBITDA in
Pallet Management Services decreased by 24.4% to US $23.0 million in 2009.
EBITDA margin in this segment fell in 2009 to 6.8% from 8.1% in 2008.
Currency adjustedEBIT increased by US $21.8 million, or 32.9%, to US $88.1
million.
IFCO reports anet profit of US $20.0 million in 2009 after a net loss of US
$11.6 million in 2008. The Company's 2009 income statement was affected by the
one-time costs recognized in connection with IFCO's comprehensive refinancing,
which were included in net finance costs. The Company's 2008 and 2009 income
statement was affected by the legal defense and settlement expenses of the ICE
investigation. Excluding both the 2009 refinancing expenses and ICE expenses
from both periods, net profit for 2009 would have been US $37.1 million, as
compared to US $14.2 million in 2008.
IFCO'scash flow from continuing operations, excluding the cash flow effect of
income tax payments and ICE related payments, increased significantly to US
$135.3 million in 2009 from US $65.3 million in 2008. Including the ICE effects,
IFCO generated cash from continuing operations of US $124.6 million in 2009 as
compared to US $57.1 million in 2008. IFCO managed its working capital very
successfully compared to prior year level and generated US $14.1 million working
capital.
Ourcapital expenditure levels (excluding the cash paid for the STECO acquisition
in 2008) were nearly flat during 2009 compared to 2008. The realization of the
planned growth in Europe and the US led to continued investments in these RPC
pools in 2009. However, we were able to more effectively manage these capital
expenditures in 2009 as a result of our significantly improved turns and
therefore higher utilization of our RPC pool. Additionally, significantly lower
costs of raw materials for all of our RPC pools reduced the average per unit
acquisition cost of a new RPC during 2009.
ROCE from continuing operations increased to a level of 19.0% in 2009 after
14.4% in 2008. While our Capital Employed was relatively stable our operational
performance and profitability in 2009 increased significantly compared to 2008
with increasing ROCE in our European and US RPC operations. The high focus of
the Company to increase the return of its invested capital did show measurable
results. IFCO will continue to emphasize asset management and asset control with
the target to further increase the respective returns.
Our sources ofliquidity currently include cash from operations, cash and cash
equivalents on hand, amounts available under our RCF and certain factoring
agreements. As of December 31, 2009, our liquidity more than doubled to US
$138.2 million compared to US $53.5 million as of December 31, 2008. We believe
that these sources are sufficient to finance our future capital and operational
requirements in accordance with our business plans.
US $ in thousands, except per share amounts 2009 2008(1) % Change
Revenues 735,926 735,888 0.0%
Revenues currency adjusted 735,926 724,637 1.6%
Gross profit 151,140 128,026 18.1%
Gross profit margin 20.5% 17.4%
EBITDA 129,010 109,569 17.7%
EBITDA currency adjusted 129,010 107,943 19.5%
EBITDA margin 17.5% 14.9%
EBIT 88,146 66,320 32.9%
EBIT currency adjusted 88,146 66,303 32.9%
EBIT margin 12.0% 9.0%
Net profit (loss) 19,954 (11,584)
Net profit (loss) per share - basic 0.38 (0.22)
Net profit (loss) per share - diluted 0.38 (0.22)
Operating cash flows from continuing operations 124,558 57,142 118.0%
Capital expenditures from continuing operations 58,075 88,953 (34.7%)
Return on capital employed (ROCE) 19.0% 14.4%
(1) The Company has made changes according to IAS 8 leading to restated 2008
Financial Statements. For more details we refer to our annual report.
The Management Board and the Supervisory Board of IFCO SYSTEMS N.V. have
resolved on March 2, 2010, to propose to the General Meeting of Shareholders to
pay adividend of EUR 0.12 per ordinary share in respect of the financial year
2009.
The Management Board and the Supervisory Board further resolved on March
2, 2010 to propose to the General Meeting of Shareholders to reduce the issued
share capital by means of acancellation of 2,650,000 ordinary shares held by
IFCO SYSTEMS N.V. in its own capital, which have been repurchased by IFCO
SYSTEMS N.V. through its share buyback program. The reduction of the issued
share capital corresponds with approximately 4.89 percent of the issued and
outstanding shares of IFCO SYSTEMS N.V. After cancellation of the 2,650,000
treasury shares, the issued and outstanding share capital of IFCO SYSTEMS N.V.
amounts to EUR 515,722.14, divided into 51,572,214 ordinary shares. The Company
will retain 332,533 treasury shares.
Outlook: As the financial crisis that unfolded in 2008 spread to the worldwide
economy in 2009, IFCO experienced challenging economic climates in many of its
markets. While the economies in both Europe and the United States, its two key
markets, remained in weakened states during 2009, it is expected that these
economies will begin to recover in the second half of 2010.
IFCO believes that its RPC Management Services business will not suffer
materially from the ongoing worldwide economic downturn, as the grocery food
retail industry, which is IFCO's main customer base, has not been as strongly
affected as other industries.
Accordingly, the European RPC Management Services business will continue to
leverage IFCO's leadership position and market experience to meet or exceed
overall market development. The Company plans to increase its sales initiatives
and to continue to expand its geographic presence in Western Europe, Central
Eastern Europe (CEE) and South America. In the United States, IFCO has seen
increases in the overall RPC penetration among grocery food retailers and plans
to grow in excess of this market development. Based on the Company's solid RPC
business model, IFCO expects that the RPC Management Services businesses will
continue to grow in 2010. IFCO's investments to support this growth will be
carefully aligned with its business development and are targeted to continually
increase the return on its invested capital.
IFCO's Pallet Management Services business has significantly been negatively
affected by the overall economic decline in the United States in 2009, primarily
as a result of pressure on prices from lower market demand. Nevertheless, IFCO
remains confident that the key competitive advantages of the Pallet Management
Services business - the breadth of service offerings, the national network and
the value proposition at a national and local level - have not changed and
should allow its Pallet Management Services segment to stabilize revenues and
increase profitability in 2010.
The Company believes that on its current assessment of the markets and its
business the trends described above should result in overall gains in both
revenues and operational profitability in 2010 as compared to 2009.
Financially, IFCO expects to be able to fund its capital, operational and debt
service requirements through its own operating cash flows.
For further explanations, please see IFCO's annual report, which will be filed
with the Deutsche Börse AG on or about March 3, 2010, and will be available on
the Company's website www.ifcosystems.com or www.ifcosystems.de. The Company
will hold a conference call on March 11, 2010. The details will be available on
the Company's website.
This release contains forward-looking statements that reflect Management's
current view with respect to future events. All statements contained in this
release that are not clearly historical in nature or necessarily depend on
future events are forward-looking. The words "anticipate", "believe", "expect",
"estimate", "planned" and similar expressions are generally intended to identify
forward-looking statements. These statements are based on current expectations,
estimates and projections of the Management on currently available information.
Many factors could cause the actual results, performance or achievements to be
materially different from those that may be expressed or implied by such
statements. We do not assume any obligation to update the forward-looking
statements contained in this release.
Sabine Preiss
IFCO SYSTEMS N.V.
Tel: +49 89 744 91 316
Fax: +49 89 744 767 316
Email: Sabine.Preiss(at)ifco.de
Additional Information
IFCO is an international logistics service provider with more than 210 locations
worldwide. IFCO operates a pool of over 102 million Reusable Plastic Containers
(RPCs) globally, which are used primarily to transport fresh produce from
growers to leading grocery retailers. In the United States, IFCO also provides a
national network of pallet management services. IFCO is the market leader in
this industry with almost 200 million pallets sorted, repaired and recycled
annually.
WORLDWIDE RESPONSIBILITY is an IFCO initiative, under which IFCO not only
continues to assume its social and environmental responsibility but, working
with strong project partners, expands its sphere of responsible activities. With
the initiative's first social-engagement project, IFCO supports Food Banks
worldwide in their honorable effort to provide food to the needy through the
provision of reusable containers and by co-financing delivery vehicles.
[HUG#1390643]
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IFCO Systems N.V.
Zugspitzstraße 7 Pullach null
WKN: 157670;ISIN: NL0000268456 ;Index:CLASSIC All Share;Prime All Share;
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Datum: 03.03.2010 - 14:49 Uhr
Sprache: Deutsch
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